Over 1,300 thousand metric tons of decorations and inclusions were sold in 2018, equaling revenues worth over US$ 8 billion. Key factors fuelling the demand for decorations and inclusions include,

• Rising consumer interest in foods with added inclusions and decorations
• Growing demand among foodservice companies and food product makers in a bid to stand out amid fierce competition
• Manufacturers expanding product portfolio of high-quality decorations, inclusions and toppings

The FMI study finds that industrial food and beverage processing application registered a significant demand for decorations and inclusions in 2018, amounting to a hefty 75% of the total consumption. Status-quo will continue with buoyancy in the food and beverage processing industry where producers continue to push boundaries of processing with the use of decorations and inclusions.

Processing of baked goods such as cake, pastries and sweet biscuits significantly involves the use of decorations and inclusions as their sales heavily rely on distinct presentation, taste and texture. A similar trend is observed in the processing and marketing of breakfast cereals, confectionery, ice cream & frozen desserts, snack bars and beverages, thereby explaining the use of decorations and inclusions.

Commercial application of decorations and inclusions include shops distributing bakery & pastry and confectionery products. Bakery and pastry shops that offer customized food items through their own processing outlets also register considerable demand for decorations and inclusions.

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Preserved/Dried Fruit Pieces Spearhead Demand

The FMI study shows that demand for preserved/dried fruit pieces has remained higher over the past few years and the status-quo is expected to continue in the future. In 2018, preserved/dried fruit pieces accounted for over one-fourth of the global decorations and inclusions consumption.

“Consumer sentiments for healthy ingredients and value-added food products are expected to augur well for the decorations and inclusions market, especially preserved/dried fruit pieces. Chocolate-based decorations and inclusions such as sprinkles, cups, shells and different shapers are witnessing rising popularity and expected to account for over one-fourth of the total consumption in 2019,” says FMI.

Sugar sprinkles and inclusions also witnessed significant consumption in 2018, accounting for one-fifth of the total decorations and inclusions consumption. Increasing demand for gourmet sprinkles in the bakery and confectionery applications is likely to boost demand for sugar sprinkles in the coming years.

Other types of decorations and inclusions include sweetened/caramelized nuts, roast nuts, backed pieces as well as sugar pastes and icings- collectively these products accounted for nearly one-fourth of all decorations and inclusions sold in 2018.

Global Decorations and Inclusions Market: Segmentation

Analysis by Product

• Chocolate Sprinkles and Inclusions
• Chocolate Shapes
• Chocolate Cups and Shells
• Sugar Sprinkles and Inclusions
• Sugar Shapes
• Preserved/Dried Fruit Pieces
• Sweetened/Caramelised Nuts
• Roasted Nuts
• Baked Pieces
• Sugar Pastes & Icings

Analysis by End Use

• Industrial/Food and Beverage Processing
  • Baked Goods
    • Cakes
    • Pastries
    • Sweet Biscuits
  • Breakfast Cereals
  • Confectioneries
    • Chocolate Confectioneries
    • Sugar Confectioneries
  • Ice Cream and Frozen Desserts
  • Snack Bars
  • Beverages
• Bakeries and Pastry Shops
• Confectionery Shops
• Restaurants and Hotels
• Household (Retail)

Analysis by Sales Channel

• Direct Sales/B2B
• Indirect Sales/B2C
  • Intermediate/Bulk Distributors
  • Brick & Mortar Retailers
  • Online Retailers

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B2B Sales Predominate the Distribution

Nearly 90% of decorations and inclusions are sold through direct sales/B2B sales channel as demand remains consolidated in food and beverage businesses, as per the FMI study. While the trend is expected to continue in the future, remaining share of decorations and inclusions is distributed to indirect sales or B2C sales channel which includes intermediate/bulk distributors, brick & mortar retailers and online retailers.

North America continues to observe leading demand for decorations and inclusions. In 2018, the region consumed nearly one-third of the global decorations and inclusions. A bulk of the regional consumption of decorations and inclusions is centered in the United States. The region provides lucrative opportunities for decorations and inclusions manufacturers owing to the presence of an extensive network of food processing players sustaining in the fierce competition of the F&B processing and servicing industry.

Europe closely follows North America in representing the second largest demand for decorations and inclusions. Western European countries consume half the regional consumption, wherein Germany followed by France, Italy and the UK are prominent consumers of decorations and inclusions.

The FMI report tracks the decorations and inclusions market for the period 2018-2028. According to the report, the decorations and inclusions market is projected to grow at 4.6% volume CAGR through 2028.